Things to Remember When You Start to Buy Junk Silver Coins
The first thing you need to realize is that when you buy junk silver coins, you’re buying coins that are a worthy investment. They are not as valuable as pure silver coins but definitely not deserving of the word “junk.” In fact, if you’re lucky enough to find silver coins that date back to 1965 or earlier, the silver content is about 90%. That’s close to pure silver and therefore carries considerable weight.
For those who are unable to buy 99.9% silver coins, here’s a great alternative. There are actually quite a lot of these “junk” silver coins floating around like the 1964 Kennedy half dollar, Barber head quarters, Mercury dimes, and Standing Liberty quarters. Here are some tips and reminders to help you identify which silver coins you should watch out for.
1. Nothing can be done properly without some degree of knowledge. Going in blind will mean the possibility of buying the wrong type of silver coins, or wavering over whether or not you should complete a transaction. Someone could come and snatch up the junk silver coins if you show indecisiveness, and that would mean a lost opportunity for you. To assist you in your search look for U.S. minted coins minted in 1964 or earlier. If you concentrate on these silver coins, you’ll have an easier time focusing on a long term investment plan instead of getting caught with too many unnecessary details.
2. To calculate the silver value of the coins that you have, you can multiply the silver content of each coin by the current spot price of silver. This goes back to limiting your junk silver coin collection until you become familiar with the market trends. For example, Kennedy half dollars contain 0.36169 ounces of silver while mercury dimes contain 0.07234 ounces. Suppose you decide to buy silver junk coins in the form of Kennedy half dollars and the market price of silver is $40 an ounce; this means that the silver value per coin is $14.47.
3. You will also notice once you start making the rounds that prices asked by coin dealers for junk silver coins are oftentimes quote as a multiple of the face value of the coin. Confused? It can certainly be a mind-bender for a beginner but let’s run through an example: if a silver dime is quoted as selling for a multiple of 30 times its face value, this would mean a dime would be multiplied by 30 or 30 x 0.10 for $3.00. One tip would be to ask the coin dealer to explain his rate. If he has nothing to hide, he will explain it without hesitation.
4. As a buyer, you should also know that the face value quoted typically applies the same to dimes, quarters, and half dollars; however, it’s common for the face value quote of silver dollars to be higher. This means that whether you are purchasing half dollars, quarters or dimes, it will always be in reference to the “prevailing” face value which in turn is based on the silver price.
5. Now that you have an idea of how the market works, you can start looking at potential junk silver coin bargains. You can buy junk silver coins in smaller lots or in bulk, such as $100 and $1,000 face value bags. A bag of Kennedy half dollars in $1,000 face value bags at 30x face value will cost you $30,000 to purchase. Consequently, for an increase in face value rate to 30.5, you’ll receive a $500 profit on your investment.
Finding the best coin dealer to work with means doing your research and not necessarily limiting your options to your local coin dealers. Go online, ask around, find auction sites, or coin buyers who are in the business of junk silver coins. Just be sure to be well armed after doing your homework, so that you can feel confident when you approach a coin dealer to buy junk silver coins as an investment.
Learn more about how to buy junk silver coins. Stop by Atlanta Gold and Coin Buyers’ site where you can find out all about junk silver coins and what they can do for you.
